The Bundeskartellamt, Germany’s competition authority, has given the green light for the establishment of a joint venture between Volkswagen (VW) and the American electric car manufacturer Rivian.
The approval also covers VW’s acquisition of a minority stake in Rivian Automotive Inc.
Joint Venture to Focus on Next-Generation E/E Architecture
The joint venture will be equally owned by VW and Rivian, with each holding a 50% share. Their primary objective is to develop the next generation of electrical/electronic (E/E) architecture for electric vehicles (EVs).
E/E architecture encompasses the design and integration of various electrical and electronic functions within vehicles, including control units, sensors, and their interactions.
Bundeskartellamt’s Assessment
Andreas Mundt, President of the Bundeskartellamt, emphasized the significance of the right system architecture as a key competitive factor, especially with the increasing digitization and connectivity of cars.
The cooperation project was scrutinized for its potential impact on innovation competition, but no concerns were raised.
Mundt stated, “When it comes to cooperation projects set up to develop new products and technologies in key cutting-edge sectors, particularly those involving large companies, we take a close look at competition in innovation.
The project does not raise any concerns in this respect, nor does it raise any other serious competition concerns.”
Evolving E/E Architecture in the EV Landscape
The current E/E architecture, characterized by numerous distributed control units, is considered insufficient for future vehicles.
The anticipated shift towards electric mobility will result in a significant increase in electrical and electronic components in cars, including autonomous driving functions and network-based value-added services.
Software is expected to play an even more crucial role in this evolving landscape.
Approval Based on No Significant Impediment to Competition
The project’s approval was based on the assessment that it would not significantly hinder effective competition.
This holds true regardless of whether the relevant market is defined as the entire E/E architecture or its various sub-systems and sub-services.
Car manufacturers will still have ample options for building E/E architectures, and there are no concerns about substantial impediments to innovation competition in this field. Additionally, competition in the downstream markets for vehicles utilizing E/E architectures is not expected to be seriously affected.